All-terrain Vehicle Market worth $3.3 billion by 2030, Globally, at a CAGR Of 8.9%, Says MarketsandMarkets™

Delray Beach, FL, Aug. 25, 2025 (GLOBE NEWSWIRE) -- The global all-terrain vehicle market size is projected to grow from USD 2.9 billion in 2024 to USD 3.3 billion by 2030 at a CAGR of 2.3%, as per the recent study by MarketsandMarkets™.  The all-terrain vehicle (ATV) market is expected to grow due to increased demand across various applications such as agriculture, military and defense, and recreation. Moreover, increased recreation and outdoor activities like utility, sports, and racing events have fueled the demand for ATVs with advanced features. The ATV market is growing with artificial intelligence and smart connected features, which has raised the market for electric ATVs with more safety features and attracted new customers. Hence, these factors contribute to the market's growth.

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Utility type ATVs hold the largest market

The utility segment holds the largest market share in ATVs. Some of their uses include carrying tools and machines, plowing fields, and moving goods through difficult places. Furthermore, many developed countries have started increasing their military budgets, where some is spent on modernizing the ATVs & procuring new ATVs to conduct any military operator. For example, in May 2024. The Indian Army had purchased 250 units of MRZR-D4 ATVs from Polaris Inc, for strengthening the military sector. Also, European countries are using this ATVs for the farming sector and military sector which has boosted the market. For instance, Polaris Inc. routinely provides the German military with specially designed MV850 all-terrain vehicles to improve operational excellence in the field.

The ATV manufacturers are focused on their R&D to develop new UTV vehicles with various engine capacity options for the customers. For instance, the 2024 XPEDITION XP ADV Series SxS UTV model with a 1000 cc engine capacity was introduced by Polaris Inc. (US). This vehicle was introduced in the new category of “Adventure SxSs.” Whereas in April 2023 Artic Cat had unveiled their Prowler Pro Dual-Purpose Utility Vehicle which was specifically designed for outdoor work and recreational activity. It was equipped with an engine capacity of 812 cc engine with EFI and CVT transmission. Hence many OEMs are offering the utility ATVs with engine capacity >800 cc to carry out the task which needs extra load carrying capacity and can travel through rough terrain. Also, the growing demand in agriculture and military sector is driving the market for utility type ATVs which will drive the market in future.

≥Two-seater ATVs are estimated to be the fastest growing ATVs

The industry ≥two-seater ATVs have higher demand as they are becoming popular for recreational purposes, family trips, and group expeditions. The ATVs with extra seating capacity are often known as Side-by-Side vehicles or UTV vehicles; according to a primary source, the ATVs which are manufactured in the US are offered in a range of USD 16,000 - 18,000 for 400 - 800 cc engines, whereas the side-by-side vehicles are priced starting from USD 20,000 which only cost 2,000 - 4,000 extra for multi-seater ride. Hence, there is a shift in consumer buying behaviors towards ≥two-seater UTVs, which makes it ideal for families & friends for outdoor adventure. Others who would not consider using an ATV for fun may be interested in these vehicles because they have additional seats and better comfort. Also, this variability in seating dispositions creates room for further uses, such as taking employees around large estates or carrying tools for outdoor tasks.

Also, the ≥ two-seater ATVs have created new opportunities for parents to ride alongside their children and enable friends to venture on off-road adventures as a cohesive unit. These ATVs find utility in various activities such as recreational riding, cargo transportation, towing, and general transportation. ATV manufacturers are actively investing in R&D to develop new ATVs with ≥two-seater capacity as per the change in consumer buying behavior from ATVs and Side-by-Side vehicles. For instance, in May 2024, Polaris Inc. (US) launched the 2025 RZR Pro R, a four-seater arrangement designed for a rugged adventure. Hence, these development factors have boosted the demand for ≥two-seater ATVs catering to recreational and occupational purposes.

Europe accounted for the second largest market in the global all-terrain vehicle

Europe is estimated to be the second-largest market for all-terrain vehicles after North America. Major countries like Germany, the UK, France and Spain have a higher demand for all-terrain vehicles. Europe has key players such as Polaris Inc. (US), Yamaha Motor Co., Ltd (Japan), BRP (Canada), Honda Motor Co., Ltd (Japan), and CFMOTO (China). According to the annual report of CFMOTO (China) and secondary search, the company sells ~73% of its ATVs in other countries except China, and 60% are sold in Europe. According to industrial experts, this is due to lower import tariffs for Chinese ATVs.

Moreover, most European countries have larger farm sizes, which has created a higher demand for utility ATVs. As a result, ATVs play a crucial role in inspecting crops, carrying out farm practices, and managing animals in general. However, several European nations use these vehicles for agricultural purposes owing to their remarkable adaptability and maneuverability amidst diverse types of landscapes. The remaining tiny fraction of ATV usage revolves around games and pastimes. Consequently, France, Germany, and Russia are Europe's leading ATV markets.

EU Regulation no. 167/2013 (T) and EU Regulation no. 168/2013 (L) provide rules for making all-terrain vehicles for business or recreation use in Europe. Due to these regulations, there were many significant changes within the ATV industry in Europe over the last four to five years. ATV producers wholly accepted these transformations and started converging towards fulfilling European government requirements while stabilizing the European market. For instance, in the UK, people can ride quad bikes with a weight of less than 550 kg on public roads if they have a valid driver's license and car insurance. By 2024, sales of ATVs are anticipated to surge around Europe due to regulations that will allow their use on the highways, which will require standards and safety measures that must be observed for more promising marketplaces for ATVs.

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What are the main drivers of growth in the All-terrain Vehicle Market?

• Increasing Popularity of Recreational and Sports Activities

Growing interest in outdoor recreational activities, off-roading sports, and adventure tourism is boosting demand for ATVs globally.

• Rising Use of ATVs in Agriculture, Forestry, and Construction

Expanding utilization of ATVs for farm work, land management, and site access in rough terrains fuels market growth across commercial and industrial sectors.

• Technological Advancements in Design and Engine Performance

Innovations such as enhanced suspension systems, improved fuel efficiency, electric-powered ATVs, and safety features are attracting a broader customer base.

• Growing Consumer Preference for Electric and Hybrid ATVs

Environmental concerns and regulatory pressure are driving demand for electric ATVs, particularly in regions with stricter emissions standards.

• Increasing Investments in Adventure Tourism and Outdoor Recreation Infrastructure

Development of dedicated off-road trails, parks, and recreational resorts supports ATV sales, especially in North America and Europe.

• Rising Awareness About Environmental Sustainability and Safety Features

Manufacturers are integrating emission control technologies and safety gear, which encourage eco-conscious and safety-aware customers.

• Expansion of Distribution Channels and Online Retailing

Easier access to ATVs via online platforms and dealerships has improved market penetration even in remote areas.

• Growing Number of Government Initiatives and Regulations Supporting ATV Usage

Some governments promote ATV adoption for agriculture, rescue operations, and rural mobility, while simultaneously enhancing safety regulations

Which regions and countries are leading in All-terrain Vehicle Market adoption?

North America

• United States: Largest market driven by strong recreational culture, wide availability of off-road trails, and demand in agriculture and forestry sectors.
• Canada: Growth supported by extensive rural terrains and increasing use in outdoor sports.

Europe

• Germany, France, UK, Italy: Mature markets with a mix of recreational and commercial ATV usage backed by safety regulations and infrastructure development.
• Nordic countries: Consistent demand focused on outdoor activities and rugged terrain access.

Asia-Pacific

• China, Japan, Australia, India: Rapid growth attributed to expanding adventure tourism, increasing agricultural mechanization, and emerging interest in recreational vehicles.
• Southeast Asia: Growing market supported by rural transport applications and eco-tourism initiatives.

Middle East & Africa

• South Africa, UAE, Saudi Arabia: Emerging adoption driven by recreational use in desert regions and commercial applications in agriculture and oil exploration.

Latin America

• Brazil, Mexico, Argentina: Increasing penetration through growing rural economies, agriculture mechanization, and expanding leisure markets

Who are the top players in the All-terrain Vehicle Market?

• Polaris Inc. (US)
• BRP (Canada)
• Honda Motor Co., Ltd. (japan)
• Textron Inc. (US)
• Yamaha Motor Co., Ltd. (Japan)
• Kawasaki Heavy Industries Ltd. (Japan)
• Suzuki Motor Corporation (Japan)
• CFMOTO (China)
• Kymco (Taiwan)

Key Findings of the Study:

1. By drive type, the 4WD segment is projected to be the largest market during the forecast period.
2. By application, the military & defense segment is projected to grow at the highest CAGR during the forecast period.
3. North America region holds the largest share of the All-terrain Vehicle Market.

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